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Chesapeake Energy Bankruptcy Plan Giving Lenders Control Approved by US Judge

Gary McWilliams, Reuters Your browser does not support the audio element. U.S. oil and gas producer Chesapeake Energy Corp. s Chapter 11 bankruptcy plan was approved by a U.S. judge on Jan. 13, giving lenders control of the firm and ending a contentious trial. Chesapeake will emerge from bankruptcy with about $3 billion in new financing, a $7 billion reduction in debt, and $1.7 billion cut from gas processing and pipeline costs. Investors who committed last spring to back the restructuring as energy tumbled stand to benefit enormously. A rebound in energy prices raised Chesapeake s value to about $5.13 billion, the judge hearing the case said.

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